To push investment and revive the economy Union Government on Friday brought an Ordinance to make certain amendments in the Income-tax Act 1961 and the Finance Act 2019.
Under the Taxation Laws (Amendment) Ordinance 2019, a new provision has been inserted in the Income-tax Act with effect from FY 2019-20 which allows any domestic company an option to pay income-tax at the rate of 22 per cent subject to condition that they will not avail any exemption or incentive, Finance Minister Nirmala Sitharaman said in a press conference in Goa.
The effective tax rate for these companies shall be 25.17 per cent inclusive of surcharge and cess. Also, such companies shall not be required to pay Minimum Alternate Tax. (UNI)